6 Reasons to Bring Real Estate Into Your Retirement Plan

As you progress in your life, you start to look forward to the sunny, relaxing days of retirement. But figuring out the finances to allow a peaceful, fun-filled retirement can be tricky. The good news is that real estate can help you build out a stable and secure retirement plan that will allow you to retire and relax! Let’s look at 6 reasons why real estate should feature in your retirement plan.

1. Provides long-term stability: Real estate isn’t a get rich quick scheme, and because of that, it will provide you with long-term security. Real estate values increase over time, so if you ever sell your investment property, you can plan on getting a great return on your investment.

2. Diversifies your portfolio: If you want to have a stable and secure retirement, you shouldn’t focus just on building out your 401(k). Investing in different areas, like real estate, will help you build out your portfolio and will ensure your eggs aren’t all in one basket.

3. Tax benefits: The tax benefits that come with real estate investments (like the capital gains deferral) are definitely something to also consider. Additionally, if you have a rental property, you can write off expenses related to the property to decrease your taxable income.

4. Opportunity to build capital: Real estate can help you build wealth as you develop equity in the properties. Additionally, if you invest in a rental property, you can also bring in monthly passive income to pad out your retirement income.

5. Hedge against inflation: If you know anyone who’s retired in the last few years, you’ve probably heard about how inflation has really done a number on the dividends from their 401(k) or stock investments. Real estate appreciates over time and isn’t linked to the market in the same way stocks are, so you have more protection against inflation.

6. Pass down your investments to your heirs: Real estate investments can set your heirs up for a stable and secure living situation. By leaving your real estate to your heirs, you can ensure that your loved ones have a place to live or a great investment that can continue to grow generational wealth.

Real estate is a powerful investment to factor into your retirement plan to add stability and financial benefits. To build your wealth out for retirement, talk with an experienced real estate agent or some real estate investors to see how real estate can put your money to work for you.